This invention relates to a method of and a system for transferring funds.
At present, remote banking generally involves the use of magnetic stripe cards, together with cheques or cash. The cards are encoded with information identifying holders of the cards. The information stored on the card is typically a primary account number (PAN). Typically, the card is inserted into an automatic teller machine (ATM) and a personal identification number (PIN) is entered by the cardholder. In some cases, the ATM verifies that the entered PIN corresponds with a PIN calculated by the ATM and then allows a transaction such as a withdrawal or deposit of funds to take place. If the ATM is on-line to the relevant financial institution, the account of the cardholder may be debited immediately a withdrawal takes place, or the ATM may store the transaction information, with the cardholder's account being debited at a later stage, utilising track 3 on the card. In any event, direct debiting or crediting of an account is generally limited to a two way transaction between a financial institution and an account holder at the financial institution.
Cheques, credit cards, debit cards and cash are also utilised for the purchasing of goods and services. However, these systems are cumbersome and risky and, if provided as on-line services, are relatively unreliable and expensive.